One Bank, One UniCredit Glossary London, 13 th December 2016
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Glossary (1/7) Business CBK CEE Center / Corporate Center CIB Client-driven revenues CMIB CQS CRM Commercial Banking Central Eastern Europe includes: Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herz., Serbia, Russia, Romania, Bulgaria, Turkey (at equity), Baltics (Latvia, Lithuania, Estonia) only for Leasing pls refer to "Group Corporate Center" definition Corporate & Investment Banking CIB revenues excluding Treasury Capital Markets & Investment Banking "Cessione Quinto Stipendio" (salary backed loans) Customer Relationship Management 2
Glossary (2/7) Business Digital clients DCM ECM EGM GBS GOP GTB Group Corporate Center HNWI Total online active users Debt Capital Markets Equity Capital Markets Extraordinary General Meeting Global Banking Services Gross Operating Profit calculate as difference between total revenues and operating expenses Global Transaction Banking Corresponding to the divisional database section: "Global Corporate Center" including Corporate Center, GBS and elisions High Net Worth Individuals 3
Glossary (3/7) Business 4 Joint CIB- Comm Banking Revenues Mittelstand Corporates OCR Remote transactions Run the bank costs Share of Wallet TFA WE Includes revenues on GTB, ECM, DCM, M&A, Markets products from Commercial Banking clients and structured financing products from Corporate clients Small and medium sized companies Optical Character Recognition Includes cash withdrawals, cash deposits and transfers IT Running costs include all the IT costs sustained to keep the bank running: application maintenance, infrastructure management (hardware, base software, network, storage), internal and external staff costs dedicated to such activities Percentage of Loans UniCredit S.p.A. grants to its customer base vs total loans granted by the Banking System to the same customer base Total Financial Assets Western Europe includes: Italy, Germany and Austria
Glossary (4/7) CFO ABB CET1 Ratio Cost/income G-SIFI LCR Leverage ratio MDA Net cost savings Accelerated Book Building Common Equity Tier 1 ratio fully loaded throughout the document unless otherwise stated Ratio between operating expenses and total revenues A globally systemically important financial institution (G-SIFI) is a bank, insurance company, or other financial institution whose failure might trigger a financial crisis Liquidity Coverage Ratio (amount of liquidity available for a bank to meet its short term liquidity needs) The leverage ratio is defined as Tier 1 capital divided by a non-risk-based measure (exposure) of an institution s on- and off-balance sheet items Maximum Distributable Amount Overall cost savings including the offsetting of increases generated by wage drifts and inflation, therefore equal to net benefit visible in P&L 5
Glossary (5/7) CFO NSFR RACE Regulatory Capital Buffer Restated figures RoAC RoTE Net Stable Funding Ratio (the NSFR is defined as the amount of available stable funding relative to the amount of required stable funding) Risk Adjusted Capital Efficiency, calculated as (Revenues managerial expected loss) / RWA Mandatory capital that financial institutions are required to hold in addition to other minimum capital requirements Restatement for new Group perimeter: variations related to disposals of Immo Holding, Ukraine, 30% Fineco, Pekao and Pioneer RoAC: Return on Allocated Capital (Annualized net profit / Allocated Capital). Allocated Capital based on RWA equivalent figures calculated with a CET1 ratio target of 12.5% for all the plan horizon, including deductions for shortfall and securitizations. Return on Tangible Equity (Annualized Net income / Average Tangible Equity) 6
Glossary (6/7) Risk 7 Adjusted figures Bad Loans CoR Default rate De-risking Dividend pay-out ratio EL Group Core LLP Figures including one-off LLP on restated perimeter Exposures to borrowers in a state of insolvency or in an essentially similar situation, regardless of any loss forecasts made by the bank Cost of Risk calculated as LLP of the period analized / Average loans volume in the period analized Gross Inflow to NPE in current year / Stock of performing portfolio on previous year De-risking refers to the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid, rather than manage, risk Percentage of net profit paid as dividend to shareholders Expected Loss Group excluding Non Core Loan Loss Provisions
Glossary (7/7) Risk Non Core NPE Past Due RWA UTP In 2013 UniCredit ring-fenced the so-called "Non-Core" portfolio in Italy with a target to reduce clients exposure considered as not strategic; selected assets in Italy to be managed with a risk mitigation approach Non-Performing Exposures shall be classified in the following risk classes: Bad Loans ( Sofferenze ), Unlikely to Pay ("Inadempienze Probabili") and Past Due ("Esposizioni scadute e/o sconfinanti deteriorate") Problematic exposures that, at the reporting date, are more than 90 days past due on any material obligation Risk Weighted Assets Unlikely To Pay: the classification in this category is the result of the judgment of the bank about the unlikeliness, without recourse to actions such as realizing collaterals, that the obligor will pay in full (principal and / or interest) its credit obligations 8